Integration of Environmental Management with Other Managerial Functions of the Firm: Empirical Effects on Drivers of Economic Performance

Abstract

In this paper I analyse the association of the integration at firm level of environmental considerations and other managerial functions with drivers of economic performance. I address the to-date-unresolved question of whether there are differences in the association between integration and different drivers of economic performance, i.e., when are the benefits of integration high and when low? The results are presented for four different drivers of economic performance, which are (1) market-related, (2) image-related, (3) efficiency-related and (4) risk-related. A generally positive, yet varying, association of integration with these performance drivers is confirmed by this first systematic empirical analysis of the effect integration has on drivers of economic performance. Based on the results, implications for managers and ways in which they can make use of the findings, as well as tools that can help integration, are discussed. This paper extends the theoretical literature on integration, which so far has been limited from a managerial perspective in that it has not been much linked to work on managerial tools that can help in achieving integration. The paper thus provides insights for managers into the benefits of integration and suggests innovative means of achieving it that are grounded in management research.